How does that work? A question that is generating a lot of buzz around the landlord community when evaluating the possibility of collecting rent automatically from their tenants. It is a great question, and while in general the answer is simple, the details can vary widely from company to company. The real question then becomes; “What do I want in an online rent collection company?”.
To answer the simple question, online rent collection utilizes the Automated Clearing House (ACH) network to debit the rent payments from the tenant’s checking or savings account, and to deposit it into the landlord’s account. That is the extent of the simple answer. The rest varies depending on the company that is chosen.
The number of days it takes to deliver the rent to the landlord can be anywhere from 2 business days to 8 or 9 business days. The amount of time required to deposit the rent payment depends largely on the agreement that is made between the online rent collection company and the bank that provides the ACH service. In most cases the rent is debited from the tenant and deposited into the bank account owned by the online rent collection company. Once the rent clears, they initiate a deposit to the landlord. This process generally takes between 5 and 9 business days. Landlord Technology, the nation’s leading online rent collection company collects the rent from the tenants and deposits it directly into the landlord’s bank account in 2 business days. This eliminates risk to the landlord, as well as cutting time to receive rent.
Information security provided by the electronic rent collection company is an extremely important attribute to consider when selecting a company to collect rent. The landlord’s and tenant’s personal and banking information needs to be encrypted and the website should be scanned daily to ensure the site is free from malware and spyware.
Last, but certainly not least the electronic rent collection company should provide the highest level of customer service in order to effectively answer questions and provide the necessary support. It is important to consider the methods available to contact the company as well as the hours of support that is available to their customers.
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